Rex International is withdrawing its 30% farm-in in WA-488-P exploration permit in the shallow water area of Western Austraila, in a new agreement with MEO Australia.
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Image from Rex International. |
This plan is part of Rex's revised corporate strategy to focus on its key discovery assets in Norway and Oman, in light of challenging market conditions.
Located between the producing Blacktip gas field and undeveloped Turtle and Barnett oil discoveries, WA-488-P contains the Beehive prospect.
MEO has received US$53,500 as compensation for the costs incurred by the group through the process of negotiating the original transaction to bring Rex into WA-488-P in May 2015 and their subsequent exit.
CEO and managing director of MEO, Peter Stickland said this results to the firm regaining a 100% participating interest in WA-488-P.
“The path is clear to continue engagement with a number of other parties that are evaluating WA-488-P, which contains the Beehive prospect, one of the largest undrilled hydrocarbon structures in Australia,” he said.
“MEO will also continue to focus on accelerating activities on priority targets New Zealand and Cuba, where the company sees very significant potential for block 9, which is located in a proven hydrocarbon system.”
Last week, MEO announced its decision to discontinue its involvement in the NT/P68, WA-360-P and WA-361-P exploration permits in Australia within six months.
NT/P68 where the group has 100% interest in the Heron area, MEO said results from the Heron discovery showed less potential of gas supply source for its Tassie Shoal projects. WA-360-P (62.5%) and WA-361-P (50%), however, are considered high risk for its exploration strategy, relative to other assets.
The firm has also been looking to venture into the Southeast Asian market. In June, an agreement was signed with Malaysian-based Brooke Dockyard and Engineering Work to jointly bid on exploration opportunities within Malaysia, in particular Sarawak.
At the initial stage, MEO with 25% interest will provide technical and evaluation assistance to Brooke, which will hold the remaining stake and fund the evaluation and exploration activities.
Over the years, the Malaysian oil and gas sector has attracted several international oil companies to it its local content, such as Chevron, Murphy Oil, ConocoPhillips, INPEX, JX Nippon and Lundin Petroleum, to name a few.
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